January 20th, 2010
By: Lisa
We have several indications of trades today.
Our trading methods indicate potential longs on GPB/USD, USD/JPY, AUD/USD and USD/CHF. Also, there are indications of potential shorts on USD/CAD and GBP/USD.
The Cable is giving us mixed indications. There might be a very short term up trend due to the heavy selling yesterday, but we think it will generally continue its downtrend, at least for another couple of days. We are going to stay out of this trade. If we were going to trade this, we would go short for the longer term trade. Enter on a Sell Stop at 1.6240 with an initial stop loss of 1.6459 and a take profit at 1.6120. Notice we are risking over 200 pips for a potential gain of 120 pips. This is one of the reasons we are standing aside on this trade.
The Yen has continued its upward trend and should keep moving up over the next few days. We are already in this trade from yesterday, but if we were to enter now, we would place a Buy order at market. Place the stop loss at 90.50 with a take profit at 92.60. Since we are already in the trade, we are going to move our stop loss up to 91.25. It is a little close, but it locks in some profit if the pair should reverse itself.
The AUS/USD had a major move down yesterday, so there is some potential for a short term rise as people take profits. Also, in the longer term, the pair is somewhat oversold, and it could continue to reclaim some of the drop from yesterday. We are going to place a Buy Market order with an initial stop loss at 0.9065 and a take profit at 0.9226. The stop is close, but it is below the lowest price seen over the last couple of weeks. We want to minimize our loss if the pair continues to drop.
The USD/CHF has had a large run up and is well over the 14 day moving average. In addition, it is near the high prices reached over the last few months. It may continue to rise, as our indications are telling us, but we are going to pass on this trade. If we were going to enter it, we would place a Buy Stop order at 1.0471 with an initial stop loss at 1.0371 and a take profit at 1.0570. But we still feel this might be a bad move, so we are staying out.
Finally, the USD/CAD had a huge jump and looks like it might retrace some. If the upward trend continues, we want to limit our potential loss. So we are going to go short at market with an initial stop loss at 1.0490. We will set a take profit at 1.0353, and also set a close trailing stop of 35 pips.
Check back tomorrow to see how our picks make out!
|
Pair
|
Order
|
Entry
|
Stop Loss
|
Take Profit
|
|---|---|---|---|---|
| GBP/USD | Sell Stop | 1.6240 | 1.6459 | 1.6120 |
|
USD/JPY
|
Buy
|
Market
|
90.50
|
92.60 |
|
AUD/USD
|
Buy |
Market
|
0.9065
|
0.9226
|
| USD/CAD | Sell | Market | 1.0490 | 1.0353 (t/s 35) |
IMPORTANT NOTE: These are not Forex picks nor Forex recommendations. This information is provided for educational and informational purposes only. Use this information at your own risk. You MUST apply your own trading methods and your own opinions to an Angel Pair Pick to determine if a trade should be considered. Also, you do not need to trade all of the Angel Pair Pick pairs, nor should you. There's no need to place more than a few trades on any given day and our recommendation is when you get to 6 open positions, don't add any more trades until one of them is closed out.
Note: Forex, futures, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using Angel Pair Picks will generate profits or ensure freedom from losses.
